Nevada License Law
What is 'conversion' of client funds under Nevada real estate law?
AConverting a rental property to condominiums in Nevada
BThe unauthorized use of client trust funds for the licensee's personal or business purposes — a serious criminal violation in addition to a license law violation✓ Correct
CThe conversion of a real estate license from salesperson to broker
DChanging the currency type of earnest money in an international transaction
Explanation
Conversion is the wrongful taking and use of another's property (including funds) for one's own purposes. In Nevada real estate, conversion occurs when a licensee uses client trust funds — earnest money, security deposits, down payments — for personal expenses, operating costs, or any purpose other than the client's intended use. Conversion is both a license law violation (grounds for revocation) and a criminal offense (theft). It is more serious than commingling because it involves actual misappropriation of funds.
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